Among the many responsibilities you have as a business owner, protecting your business and its best interests is perhaps one of the most crucial. Ensuring the staff you hire adheres to your policies and standards is critical because the livelihood of your business depends on it, as does your reputation. As a business owner who chooses to work with independent contractors, you are especially at risk for financial loss and headache if you do not handle the legal aspects of your relationship with those contractors correctly.

Why Working with an Independent Contractor Poses Certain Risks

Employers can run into costly fees because of overdue Federal and state income taxes when they work with independent contractors. This stems from confusing independent contractors with employees, also known as the "misclassification of employees."